A long ascent in the price of used condominiums in central Tokyo appears to be stalling, as the government takes steps to tame surging housing costs, and inflation and rising interest rates sap investor demand for real estate.
Average contract prices for used condos in bay-side neighborhoods such as Toyosu and Kachidoki decreased 0.6% in January from December, marking the first decline in five months, according to FJ Realty, a Tokyo-based real estate broker. Prices rebounded 1% in February, but a large number of properties going to the market around the same time has limited sellers’ ability to unload real estate at high prices, said Shogo Fujita, president of FJ Realty.
“Inventories have really piled up, and because there are many properties, it’s been getting harder and harder to sell,” said Fujita. “Prices had been on a rising trend, but we may be hitting the ceiling.”
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